These are challenging times. Governments are trying to keep their economies alive by injecting billions of dollars across the board. However, they are trying to do so while receiving less money, a very difficult task, especially for nations where PUBLIC DEBT was already high before the pandemic.
So how do governments make money ?
Lets ger started: For most governments, the main source of revenue is taxes. In the U.K., the biggest chunk comes from taxes on people's earing, known as Income Tax and National Insurance contributions. If you are employed in U.K., these comes out of you paycheque even before it hands in your bank account, While in the United States, salaried workers often have to pay a retrospective tax bill based on their previous years earnings. There are also plenty of indirect taxes levied when goods and services are sold. When a buy a coffee, a chocolate bar or a car, well that's taxed too in U.K.. These consumption taxes, such as the U.K.'s VAT or Indian's GST are another important source of revenue.In fact, taxes on income and consumption amount to about two thirds of tax revenues in the U.K.